1. A firm sells 60,000 units of their product. Each unit has a selling price of $55 and a variable cost of $25. The firm also has fixed costs of $800,000 and interest expense of $50,000.
What is the Degree of Combined Leverage for this firm?
2. A firm sells 60,000 units of their product. Each unit has a selling price of $55 and a variable cost of $25. The firm also has fixed costs of $800,000 and interest expense of $50,000.
What is the Contribution Margin per unit?